New Delhi, July 4 (IANS): State-run explorer Oil India (OIL) Friday said it has completed the acquisition of 50 percent stake in an oil block in Russia for $85 million.
OIL said it has "completed the acquisition of 50 percent shareholding in WorldAce Investments Ltd (WorldAce), a Cyprus-based wholly-owned subsidiary of PetroNeft Resources Ltd (PTR), which owns License 61 in Tomsk Oblast region in Western Siberia, Russia."
The acquisition marks OIL’s entry into Russia and is a major addition to the company’s overseas portfolio.
“The total commitment from OIL will be $85 million including $45 million for development capex. The effective date of the acquisition is January 1, 2014,” the company said in a statement.
License 61, located on the eastern side of the Ob river in Russia's oil-bearing Tomsk Oblast region, contains 7 oil fields and over 25 identified prospects and leads. Current daily production from the licence is around 2,100 barrels of oil.
OIL had last month signed an MoU with Russia's Gazprom for joint pursuit of exploration opportunities across the globe as well as collaborate on liquefied natural gas (LNG).